Answer To: Subject:BSBMGT403 – Implement Continuos Improvement Deadline: Friday 23 Oct 2020 (mid-day) Word...
Payal answered on Oct 22 2021
BSBMGT403
Implement Continuos Improvement
Submitted By –
PURPOSE
The purpose to carry out this activity is to carry out an improvement activity in an Organization, to understand the challenges of change management, adaptability of change in processes w.r.t existing process, possible potential ways to overcome these challenges.
BACKGROUND
We all are moving towards Industrialization 5.0 & in parallel this unfortunate & uncertain Covid-19. Almost all organizations, be it a major manufacturing hub or a small retailer, has forcefully changed its concept of doing business.
Considering the above fact, organizations are focusing on lean operation by reducing their operational cost by increasing their efficiency & improvement activities & ultimately leading to profitability of the organization.
To understand our case in better way, we are considering a case of manufacturing sector wherein the prime focus is to improve Supply Chain functions like Inventory Management, Procurement, supplier performance evaluation, etc.
CURRENT SITUATION
The current processes of the company, right form the planning to final dispatch of products involves multiple activities like Budgeting, requirement generation, indenting, procurement, inbound logistics, manufacturing, outbound logistics, accounts payable & receivables, etc.
CHALLENGES
A) Tangible
The overall processes are though working on automation mode but de-linked with its corresponding process. For e.g, indenting in generated in a separate software & PO is created in different software whereas the material receiving in monitored manually.
S No
Top Concern
Intermediate Concern
Challenges
1
Deficiency in Intermediate Processes
Manual Intervention
High Lead Time
Prone to Error in transaction
Offline RFQ process
Biased vendor evaluation
No Transparency in Source selection
Missing validations
Error in transactions
High lead time in manual check
2
User Friendliness
Automode transaction
High lead time & Unproductive work of repetitive activities
Real Time status not available
High decrease in efficiency due to manual monitoring
Un-responsive behavior of Logistic personal/ vehicle traceability
3
Visibility of Expenses
No Synergy in Purchasing
Each country is sourcing same part from different sources at different rates
Non retrieval of Buying Frequency
Manual ordering of repetitive items where the buying frequency is high & no value addition is done once cost & source is fixed,
Past Price Trend
No fixed data extraction methodology which can help in Purchase cost assessment
Competitive Suppliers
Performance Management of Suppliers
B) In-Tangible
In any project related to Improvement in existing processes, there are few softer issues which are the actual contributors to define the success & failure of the project. This soft issue is actually a Non-Acceptance of change by associates.
There could be several reason behind this, however, based on the experts, few of them are listed below –
No Acceptance –...